Why You Are Two Times More Likely To Fail Without A Business Plan

WHY YOU ARE TWO TIMES MORE LIKELY TO FAIL WITHOUT A BUSINESS PLAN FAILING TO PLAN IS PLANNING TO FAIL Creating a business plan that is useful in today's business environment will help ensure success in growing your business, and it is crucial for receiving funding. 49% 51% 49% According to the Small of business start ups FAIL Business Administration: within 5 years REASONS WHY BUSINESSES FAIL: You Start Your Business for the Wrong Reason Starting a business with hopes of making lots of money - instead of doing what you love - can equal diaster. (2 (3 (4) (5) Poor Management Lacking business and management expertise can be detrimental when it comes to managing employees and finance. Lack of Planning (no business plan) A comprehensive business plan is critical to the success of your business. Without it, the chance of failure increases. Insufficient Capital One common mistake for many start-ups is not having sufficient operating funds. It takes time to build revenue. Location, Location, Location Location is critical to the success of your business. Know where your customers are and how to reach them No Website 77% of the population in the United States uses the internet. Every owner needs a good website to promote their business. Overexpansion Businesses often fail when owners confuse success with how fast they can expand their business. HOW CAN A BUSINESS PLAN HELP YOU AVOID FAILURE? BUSINESS PLANS CAN HELP YOU SECURE A LOAN 36% of ..compared to 18% of those who don't have a businesses with a plan are funded... plan. BUSINESS PLANS CAN HELP YOUR BUSINESS GROW Only 43% who don't have 63% of businesses with a plan see growth. a plan experience growth. BUSINESS PLANS CAN HELP YOUR BUSINESS SURVIVE A business with a plan is 40% more likely to 60% survive than a business without one. 40% Yet, 60% of small businesses don't have one! TOP REASONS WHY YOU NEED A BUSINESS PLAN GROW YOUR BUSINESS Your plan is your roadmap that will help you establish strategy and allocate resources according to priority. Refer to your plan when making big decisions to grow your company. SEEK INVESTMENTS Investors will need to see your business plan before they decide to invest. They will expect to see a comprehensive plan. BANK OBTAIN A LOAN Lenders will want to see your business plan to answer their questions about your business and determine the risk of loaning to you. MANAGE YOUR MONEY Can you afford to rent a larger space? Hire more people? Your business plan will outline your growth prospects to keep you on track & help you deicde which risks you can take. SET OBJECTIVES FOR YOURSELF & EMPLOYEES Keep your goals on track with a guideline that you and your employees can refer to when needed. GET ADVICE FROM PROFESSIONALS AND MENTORS Share your plans with others who have been successful in business. They can help you turn your plan into action and help you make adjustments where needed. DEVELOP BUSINESS CONTACTS AND ALLIANCES Use your plan to set targets for new connections and communicate your plan with those you wish to form a business relationship with. VALUATION OF THE BUSINESS Valuation is the term for determing how much your business is worth. A business plan can help with this process when you need to know this information for tax purposes, estate planning, etc. SELL YOUR BUSINESS A business plan is a key component if you wish to sell your business one day. A plan helps buyers understand what you have, what it's worth, and why they want it. You know you need a plan, but how do you create a good one? ESSENTIAL COMPONENTS OF A BUSINESS PLAN EXECUTIVE SUMMARY: Describe your company and product or service. Who are you? What are your goals? ELEVATOR PITCH: Why should anyone invest in your business? What sets you apart or makes you different? COMPETITIVE ANALYSIS: Who are you trying to sell to? Describe the market, where you fit in, etc. MARKETING PLAN: Describe how you plan to attract new customers and build your client base. Where are you going to put your resources first? FINANCIALS: Develop a statement to show what your monetary needs are now, and outline estimated revenue projections. WANT MORE TOOLS AND DIRECTION TO MAKE YOUR BUSINESS SUCCEED? BPU business plan university www.businessplanuniversity.com SOURCES: http://www.entrepreneur.com/article/83818#ixzz20JOdlkBw http://www.businessknowhow.com/startup/business-failure.htm www.forbes.com www.sba.gov Designed by AVALAUNCHMEDIA.COM %24 %24 WHY YOU ARE TWO TIMES MORE LIKELY TO FAIL WITHOUT A BUSINESS PLAN FAILING TO PLAN IS PLANNING TO FAIL Creating a business plan that is useful in today's business environment will help ensure success in growing your business, and it is crucial for receiving funding. 49% 51% 49% According to the Small of business start ups FAIL Business Administration: within 5 years REASONS WHY BUSINESSES FAIL: You Start Your Business for the Wrong Reason Starting a business with hopes of making lots of money - instead of doing what you love - can equal diaster. (2 (3 (4) (5) Poor Management Lacking business and management expertise can be detrimental when it comes to managing employees and finance. Lack of Planning (no business plan) A comprehensive business plan is critical to the success of your business. Without it, the chance of failure increases. Insufficient Capital One common mistake for many start-ups is not having sufficient operating funds. It takes time to build revenue. Location, Location, Location Location is critical to the success of your business. Know where your customers are and how to reach them No Website 77% of the population in the United States uses the internet. Every owner needs a good website to promote their business. Overexpansion Businesses often fail when owners confuse success with how fast they can expand their business. HOW CAN A BUSINESS PLAN HELP YOU AVOID FAILURE? BUSINESS PLANS CAN HELP YOU SECURE A LOAN 36% of ..compared to 18% of those who don't have a businesses with a plan are funded... plan. BUSINESS PLANS CAN HELP YOUR BUSINESS GROW Only 43% who don't have 63% of businesses with a plan see growth. a plan experience growth. BUSINESS PLANS CAN HELP YOUR BUSINESS SURVIVE A business with a plan is 40% more likely to 60% survive than a business without one. 40% Yet, 60% of small businesses don't have one! TOP REASONS WHY YOU NEED A BUSINESS PLAN GROW YOUR BUSINESS Your plan is your roadmap that will help you establish strategy and allocate resources according to priority. Refer to your plan when making big decisions to grow your company. SEEK INVESTMENTS Investors will need to see your business plan before they decide to invest. They will expect to see a comprehensive plan. BANK OBTAIN A LOAN Lenders will want to see your business plan to answer their questions about your business and determine the risk of loaning to you. MANAGE YOUR MONEY Can you afford to rent a larger space? Hire more people? Your business plan will outline your growth prospects to keep you on track & help you deicde which risks you can take. SET OBJECTIVES FOR YOURSELF & EMPLOYEES Keep your goals on track with a guideline that you and your employees can refer to when needed. GET ADVICE FROM PROFESSIONALS AND MENTORS Share your plans with others who have been successful in business. They can help you turn your plan into action and help you make adjustments where needed. DEVELOP BUSINESS CONTACTS AND ALLIANCES Use your plan to set targets for new connections and communicate your plan with those you wish to form a business relationship with. VALUATION OF THE BUSINESS Valuation is the term for determing how much your business is worth. A business plan can help with this process when you need to know this information for tax purposes, estate planning, etc. SELL YOUR BUSINESS A business plan is a key component if you wish to sell your business one day. A plan helps buyers understand what you have, what it's worth, and why they want it. You know you need a plan, but how do you create a good one? ESSENTIAL COMPONENTS OF A BUSINESS PLAN EXECUTIVE SUMMARY: Describe your company and product or service. Who are you? What are your goals? ELEVATOR PITCH: Why should anyone invest in your business? What sets you apart or makes you different? COMPETITIVE ANALYSIS: Who are you trying to sell to? Describe the market, where you fit in, etc. MARKETING PLAN: Describe how you plan to attract new customers and build your client base. Where are you going to put your resources first? FINANCIALS: Develop a statement to show what your monetary needs are now, and outline estimated revenue projections. WANT MORE TOOLS AND DIRECTION TO MAKE YOUR BUSINESS SUCCEED? BPU business plan university www.businessplanuniversity.com SOURCES: http://www.entrepreneur.com/article/83818#ixzz20JOdlkBw http://www.businessknowhow.com/startup/business-failure.htm www.forbes.com www.sba.gov Designed by AVALAUNCHMEDIA.COM %24 %24